Dana Gas to offer new sukuk conditions in weeks – CEO

Abu Dhabi – Mubasher: Dana Gas is planning to propose new conditions for its restructured sukuk within weeks, said CEO Patrick Allman-Ward.

The company will inform the market, the Abu Dhabi Securities Exchange (ADX), of the conditions of its new sukuk, Allman-Ward told Dana’s sukuk holders in a conference call late Thursday.

The purpose of the conference call was to expound on the reasons that prompted the company to announce that its $700 million sukuk issue, due in October, was “unlawful” and to reach a deal on the means of restructuring its sukuk.

Dana Gas said it will communicate with its broad group of sukuk holders and provide information on the planned restructuring, including background on the declaration of the current sukuk’s unlawfulness, the proposed solution going forward, and the steps needed to protect its position.

In June, the ADX-listed gas company said it will hold off on its four-year sukuk payments as the bonds were no longer Shariah-compliant and have become unlawful in the UAE.

Dana’s CEO said that the yield from the new sukuk must be in line with the changes in the global bond market and the company’s improved financial position.

Financial analysts previously told Mubasher that they expected the Abu Dhabi-based company to succeed in its negotiations with sukuk holders after taking all the necessary legal measures and precautions.

Dana should resolve the issue as its current liquidity does not exceed $400 million, they added.